While small and medium-sized enterprises (SMEs) make up 99.7% of all enterprises in Türkiye, the insurance rate for them remains at 32%, according to Mr Oktem Orkun, deputy general manager of elementary commercial insurance at Allianz Turkiye.
This proportion points to a significant gap in insurance awareness among SMEs, as reported by Insurance Gazette, quoting Mr Orkun.
He added that SMEs are not sufficiently prepared for the increasing frequency of disasters, rising damage costs, and the potential consequences of prolonged business interruptions. He said, “To increase insurance rates, which hover around 32%, simply offering policies isn't enough; we also need to provide insurance education, raise awareness, and develop protective solutions.”
According to data from the Turkish Statistical Institute (Turkish Statistical Institute (TUIK), 3,713,000 enterprises operating in the industrial and service sectors in Turkiye are classified as SMEs. However, according to estimated data, 2.5m SMEs lack insurance coverage.
Risks facing SME
Mr Orkun stated that in a country like Turkey, where natural disaster risks are high, threats such as earthquakes, floods, and storms are major hazards.
In addition, fire, theft and machinery breakdowns are among the priority risks for SMEs. He said, “The majority of SMEs rely on physical assets such as buildings, machinery, and inventory. Damage to these assets can seriously disrupt a company's business continuity. Furthermore, material and bodily harm to employees or third parties can create significant financial burdens for businesses.”